You have been engaged by Kaek Consult, a tax consulting firm as an intern to be confirmed when you complete the final level of the ICAG examinations.
Your first assignment is to draft a paper to Gona Jon Ltd who intends to take advantage of contributions and donations to a worthwhile cause. Your write up should classify the types of worthwhile causes and donations available, circumstances under which they can be accessed and their benefits.
Required:
Write a draft paper for your manager’s consideration, which will be reviewed and finalized for Gona Jon Ltd on the worthwhile causes, benefits and how to access them. (10 marks)
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Kaek Consult
Box 4
Accra
12th December 2020
The Manager
Gona Jon Ltd
Dear Sir,
HOW TO ACCESS WORTHWHILE CONTRIBUTION/DONATION AND BENEFITS
Following your request for us to furnish you with the benefits of worthwhile causes and how an entity can access them, I forward as follows for your study and decision making:
Nature of worthwhile causes
The worthwhile causes are in the nature of donation or contribution towards any of the following:
- A charitable organisation
- A scheme of scholarship for an academic, technical, professional or other course of study
- Development of any rural or urban area
- Sports development or sports promotion and
- Any other worthwhile cause approved by the Commissioner-General
Benefits of the worthwhile causes
The benefits of such are as follows:
The entity is able to enjoy good will from such donation and additionally, will be used as a deduction from income before tax is imposed. This reduces the tax payable of the entity.
How to access them
Approval should be sought from the Commissioner-General or from the sector ministry to be able to enjoy the deduction from income.
Conclusion
It is hoped that the above would help you in your decision making.
In case you need further clarification on the above, do not hesitate to get in touch with the undersigned.
Thank you.
Yours faithfully,
Boys Abre3